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When a person or entity (the “lender”) loans money to another person or entity (the “borrower”), the loan is typically formalised with a written promissory note. In many instances the lender will ask for additional assurance in the form of collateral (such as property) if the borrower fails to repay the loan. The Secured Promissory Note contains three repayment options (on-demand, monthly instalments and scheduled instalments) and a Security Agreement which sets out the collateral for the loan. Having a written Secured Promissory Note and Security Agreement will prove invaluable if the borrower defaults on repaying the loan or in the event of litigation.

Among others, this form contains the following provisions:

Parties: This provision sets out the names and addresses of the borrower and the lender;

Amount and Date:This provision sets out the specific amount of money borrowed and the date the note was signed;

Repayment: This provision sets out the borrower’s repayment options;

Default: This provision contains the penalties in the event of default.

Law Compliance: This form complies with the laws of the states and territories of India

This is the content of the form and is provided for your convenience. It is not necessarily what the actual form looks like and does not include the information, instructions and other materials that come with the form you would purchase. An actual sample can also be viewed by clicking on the "Sample Form" near the top left of this page.

Secured Promissory Note and

Security Agreement

(India)

This Packet Includes:

1. Instructions and Checklist

2. General Information

3. Secured Promissory Note

4. Security Agreement

Instructions and Checklist

Secured Promissory Note and Security Agreement

Both the borrower (the person or entity borrowing the money) and the lender (the person or entity loaning the money) must sign the Agreement; however, only the borrower must sign the Note. Two copies of the Agreement should be signed so that each party has an original, but only one Note should be signed (signing two copies of the Note could evidence the creation of two Notes). The lender should hold the original Note and a copy of the signed note should be given to the borrower.

When the borrower’s obligations under the Note are satisfied (i.e. the Note is paid off), the lender should write “Cancelled”, “Satisfied in Full” or “Paid in Full” on the front face of the original Promissory Note and should then sign and date it. The original Promissory Note should then be given back to the Borrower.

Be careful when choosing an interest rate. If your rate is too high, it will be considered usury and invalid. Check with a local bank to determine the market, commercial interest rate.

Laws regarding promissory notes, security agreements and security interests vary from time to time. These forms are not intended to be and are not a substitute for legal advice. These forms should only be a starting point for you and should not be used or signed before first consulting with a lawyer to ensure that they address your particular situation. A lawyer should be consulted before negotiating any document with another party.

The purchase and use of these forms is subject to the “Disclaimers and Terms of Use” found at www.findlegalforms.com.

General Information

Secured Promissory Note and Security Agreement

When a person or entity (“Lender”) loans money to another person or entity (“Borrower”), the loan is typically formalised with a promissory note. In this type of instrument, the Borrower promises to repay the principal of the loan over a period time or on some future date. In addition, the Borrower may also agree to pay interest on the principal. A promissory note will set forth, among other things, the repayment schedule, the interest rate, and defaults.

Often the Lender will want some additional assurance, usually in the form of collateral, in case the Borrower fails to repay the loan. To ensure that the collateral is collectible in the case of a default, the parties will usually enter into another agreement—a security agreement. A security agreement sets out the rights of the Lender with regard to the collateral.

A security agreement will benefit the Lender in a number of ways. First, it will specify what property is included in the collateral. Second, it may help the Lender prove that he has a priority in the collateral (i.e. no other creditors or lenders have a right to it or that the Lender’s right is superior to other creditors). Third, in case of default, the Lender should not have to go to court to collect. The security agreement gives him immediate rights in the property. And finally, if the Borrower declares bankruptcy, with a security interest, as memorialised in the security agreement, the Lender should not have to stand in line with the other creditors, but rather should be able to take immediate possession of the collateral.

Laws change from time to time therefore both the Lender and Borrower should become familiar with the present laws before entering into these types of agreements.

In addition, before using the form you should always consult with your lawyer to ensure that it adequately addresses your specific situation.

DISCLAIMER:

FindLegalForms, Inc. (“FLF”) is not a law firm and does not provide legal advice. The use of these materials is not a substitute for legal advice. Only a lawyer can provide legal advice. A lawyer should be consulted for all serious legal matters. No Lawyer-Client relationship is created by use of these materials.

THESE MATERIALS ARE PROVIDED “AS-IS.” FLF DOES NOT GIVE ANY EXPRESS OR IMPLIED WARRANTIES OF MERCHANTABILITY, SUITABILITY OR COMPLETENESS FOR ANY OF THE MATERIALS FOR YOUR PARTICULAR NEEDS. THE MATERIALS ARE USED AT YOUR OWN RISK. IN NO EVENT WILL: I) FLF, ITS AGENTS, PARTNERS, OR AFFILIATES; OR II) THE PROVIDERS, AUTHORS OR PUBLISHERS OF ITS MATERIALS, BE RESPONSIBLE OR LIABLE FOR ANY DIRECT, INDIRECT, INCIDENTAL, SPECIAL, EXEMPLARY, OR CONSEQUENTIAL DAMAGES (INCLUDING, BUT NOT LIMITED TO, PROCUREMENT OF SUBSTITUTE GOODS OR SERVICES; LOSS OF USE, DATE OR PROFITS; OR BUSINESS INTERRUPTION) HOWEVER USED AND ON ANY THEORY OF LIABILITY, WHETHER IN CONTRACT, STRICT LIABILITY, OR TORT (INCLUDING NEGLIGENCE OR OTHERWISE) ARISING IN ANY WAY OUT OF THE USE OF THESE MATERIALS.

Secured Promissory Note

This agreement is made by and between:

LENDER: [insert LENDERname and address]

________________________________

________________________________

________________________________

BORROWER: [insert BORROWERname and address]

________________________________

________________________________

________________________________

Rs.__________________________________, 20__

[insert loan amount] _____________

[insert location]

For value received, the undersigned (“Borrower”), hereby promises to pay to the order of ____________________________________ (“Lender”), the principal sum of ___________________________________________________ (Rs._________________)

(the “Loan”) together with any accrued and unpaid interest thereon in the manner described below.

This Promissory Note (the “Note”) is referred to in and is executed and delivered in connection with that certain Security Agreement dates as of _______________________, 20____, and executed by Borrower in favour of Lender (the “Security Agreement”). Additional rights and obligations of Lender are set forth in the Security Agreement.

[Alter the provision below to reflect the agreed upon repayment schedule. CHOOSE ONE]

1. REPAYMENT:

[If the Loan will come due on a specific date, and the entire Loan repaid at that time—use the following]

The outstanding principal amount of the Loan and any accrued interest thereon shall be due and payable to Lender on _____________________, 20__.

[If the Loan is to be paid on a schedule, use the following. If there are more than six payment dates, copy additional line.]

The outstanding principal amount of the Loan is to be paid to the Lender in the following instalments:

Payment DatePayment Amount

_________________, 20_______Rs.______________________

_________________, 20_______Rs.______________________

_________________, 20_______Rs.______________________

_________________, 20_______Rs.______________________

_________________, 20_______Rs.______________________

_________________, 20_______Rs.______________________

[If the Loan is to be repaid in equal monthly instalments, use the following]

The outstanding principal amount of the Loan shall be paid in monthly instalments of Rs.____________, with the first payment beginning on _______________, 20____ and continuing every month thereafter with a like amount on the same date each month until the full amount of this note is paid in full.

2. INTEREST: The annual interest rate on the outstanding principal amount of the Loan from the date hereof until payment of the Note in full shall be ___________ percent (__%) or the maximum rate permissible by law, whichever is less. The interest shall be due and payable [monthly/quarterly/annually/ with the final payment amount as described in Section 1] [choose one].

[When choosing an interest rate consider tax and usury issues. You can check with a local bank to determine market commercial loan rates].

3.PREPAYMENT: Borrower may prepay this Note in whole or in part, without penalty. Payments shall be applied first to accrued interest and the balance to the outstanding principal of the Loan.

4.PAYMENT LOCATION: All payments hereunder shall be made to such address as may from time to time be designated by any holder of this Note and must be made in Indian Rupees.

5.SECURITY: This Note is secured by the Collateral described in the Security Agreement.

6.DEFAULT AND ACCELERATION: Borrower shall be in default under this Note upon any of the following: (a) failing to timely pay any principal amount due after demand is made, (b) Borrower dissolves, terminates its existence, or declares insolvency (c) Borrower files for relief under bankruptcy laws or any other laws for the benefit of creditors, (d) an involuntary petition is filed against Borrower under any bankruptcy laws (unless such petition is dismissed within 30 days), or (e) any default as described in the Security Agreement.

Upon the occurrence of any default Lender may declare the unpaid principal of the Loan and all accrued interest on this Note immediately due pursuant to applicable law.

In the event the Note shall be in default and given to a lawyer for collection or enforcement, or if suit is brought for collection or enforcement, or if it is collected or enforced through probate, bankruptcy, or other judicial proceeding, then Borrower shall pay Lender all costs of collection and enforcement, including reasonably lawyer’s fees.

7. BINDING EFFECT: The covenants and conditions contained in this Note shall apply to and bind the Borrower and its heirs, legal representatives, successors and permitted assigns.

8. CUMULATIVE RIGHTS: The parties’ rights under this Agreement are cumulative, and shall not be construed as exclusive of each other unless otherwise required by law.

9. WAIVER: The failure of the Lender to enforce any part of this note shall not be deemed a waiver or limitation of the Lender’s right to subsequently enforce and compel strict compliance with every provision of this Note. Furthermore, no waiver by Lender of any default shall operate as a waiver of any other default or the same default on a future occasion.

10. SEVERABILITY: If any part or parts of this Note shall be held unenforceable for any reason, the remainder of this Note shall continue in full force and effect. If any provision of this Note is deemed invalid or unenforceable by any court of competent jurisdiction, and if limiting such provision would make the provision valid, then such provision shall be deemed to be construed as so limited.

11. NOTICE: Any notice required or otherwise given pursuant to this Note shall be in writing and mailed certified return receipt requested, postage prepaid, or delivered by overnight delivery service, addressed as follows:

LENDER: BORROWER:

________________________________ ______________________________

________________________________ ______________________________

________________________________ ______________________________

Either party may change such addresses from time to time by providing notice as set forth above.

12. GOVERNING LAW: This Note shall be governed by and construed in accordance with the laws of India.

BORROWER:

____________________________________________________

(Signature)

___________________________________

(Name – Please Print)

__________________________________

(Position, if applicable)

Security Agreement

This Security Agreement (the “Agreement”) is dated as of ________________________, 20____, by and between _________________________________________ (“Borrower”) residing at ___________________________________________________ and _______________________________________ (“Lender”) residing at __________ ________________________________________ (collectively referred to as the “Parties”).

Whereas, Lender has or will make certain advances of money to Borrower (the “Loan”) as evidenced by that certain Promissory Note dated ___________________, 20__ (the “Note”), and

Whereas, Lender is willing to make the Loan, but only upon a condition that Borrower executes and deliver this Agreement.

1. GRANT: As security for the payment and performance of the Note, Borrower hereby grants to Lender a security interest in all of Borrower’s rights, title and interest in the following (collectively referred to as the “Collateral”):

(a)The Collateral will be kept at ______________________________________ and will not be removed except in the ordinary course of business.

(b) Borrower will not sell, dispose or otherwise transfer the Collateral or any interest in the Collateral without prior written consent from the Lender.

(c) Except for the security interest granted above, Borrower is the sole, legal and equitable owner of the Collateral.

(d) No other security agreement, financing statement, or other security instrument covering the Collateral exists.

(e) Borrower will not create or allow any other security interest or lien on the Collateral.

(f) Borrower, upon Lender’s request, will execute any financing statement or other document necessary to perfect or otherwise record the security interest.

(g) Borrower will not change its principal residence or principal place of business without giving Lender at least seven (7) days prior written notice.

(h) Borrower will maintain applicable insurance at all times with respect to Collateral against the risk of fire, theft and other such risks and in such amounts as Lender may require. The policies shall be payable to the Borrower and Lender as their interest appear. The policies shall further provide that the Lender’s interest in those policies will not be invalidated without at least ten (10) days prior, written notice to Lender.

(i) Borrower will make all necessary repairs and improvements to ensure that the Collateral remain in good working order. Lender may examine and inspect the Collateral at any reasonable time.

(j) Borrower will promptly pay all taxes and assessments due on the Collateral.

3. DEFAULT: Borrower shall be in default under this Agreement upon any of the following: (a) default in the payment or performance of the Note, (b) any material breach by Borrower of any warranty, representation, or covenant in this Agreement, (c) dissolution, termination of existence, declaration of insolvency, an assignment for the benefit of creditors or the institution of bankruptcy proceedings, whether voluntary or involuntary, if not dismissed within thirty (30) days.

4. REMEDIES: Upon default and at any time thereafter, Lender may declare the Loan secured by this Agreement, immediately due and payable and shall have all the rights and remedies of a Lender under any applicable laws. Without limiting the generality of the foregoing, Grantor expressly agrees that in any such default Lender may take immediate and exclusive possession of the Collateral. Lender may require Borrower to make the Collateral available in a mutually convenient location, which Lender shall reasonably select. The proceeds of any sale or disposition of any part of the Collateral shall be distributed by the Lender in the following order of priorities: (a) any reasonable costs, fees, or expenses, of Lender made in connection with the sale/disposition of the Collateral; (b) to Lender in an amount equal to any unpaid obligations of the Loan; and (c) any surplus to Borrower, in accordance with any applicable laws or as a court of competent jurisdiction may direct.

5. TERMINATION: This Agreement shall terminate upon the payment and performance in full of the Note.

6. BINDING EFFECT: The covenants and conditions contained in this Agreement shall apply to and bind the Parties and the heirs, legal representatives, successors and permitted assigns of the Parties.

7. CUMULATIVE RIGHTS: The Parties’ rights under this Agreement are cumulative, and shall not be construed as exclusive of each other unless otherwise required by law.

8. WAIVER: The failure of either party to enforce any provisions of this Agreement shall not be deemed a waiver or limitation of that party's right to subsequently enforce and compel strict compliance with every provision of this Agreement. Furthermore, no waiver by Lender of any default shall operate as a waiver of any other default or the same default on a future occasion.

9. SEVERABILITY: If any part or parts of this Agreement shall be held unenforceable for any reason, the remainder of this Agreement shall continue in full force and effect. If any provision of this Agreement is deemed invalid or unenforceable by any court of competent jurisdiction, and if limiting such provision would make the provision valid, then such provision shall be deemed to be construed as so limited.

10. NOTICE: Any notice required or otherwise given pursuant to this Agreement shall be in writing and mailed certified return receipt requested, postage prepaid, or delivered by overnight delivery service, addressed as follows:

LENDER:

________________________________

________________________________

________________________________

BORROWER:

________________________________

________________________________

________________________________

Either party may change such addresses from time to time by providing notice as set forth above.

11. GOVERNING LAW: This Agreement shall be governed by and construed in accordance with the laws of India.

[The remainder of this page intentionally left blank.]

IN WITNESS WHEREOF, the parties have caused this Agreement to be executed the day and year first written above.

BORROWER:

____________________________________________________

(Signature)

___________________________________

(Name – Please Print)

__________________________________

(Position)

LENDER:

___________________________________________________

(Signature)

__________________________________

(Name – Please Print)

__________________________________

(Position)

Number of Pages11

DimensionsDesigned for Letter Size (8.5" x 11")

EditableYes (.doc, .wpd and .rtf)

UsageUnlimited number of prints

Product number#34912

This is the content of the form and is provided for your convenience. It is not necessarily what the actual form looks like and does not include the information, instructions and other materials that come with the form you would purchase. An actual sample can also be viewed by clicking on the "Sample Form" near the top left of this page.

Secured Promissory Note and

Security Agreement

(India)

This Packet Includes:

1. Instructions and Checklist

2. General Information

3. Secured Promissory Note

4. Security Agreement

Instructions and Checklist

Secured Promissory Note and Security Agreement

Both the borrower (the person or entity borrowing the money) and the lender (the person or entity loaning the money) must sign the Agreement; however, only the borrower must sign the Note. Two copies of the Agreement should be signed so that each party has an original, but only one Note should be signed (signing two copies of the Note could evidence the creation of two Notes). The lender should hold the original Note and a copy of the signed note should be given to the borrower.

When the borrower’s obligations under the Note are satisfied (i.e. the Note is paid off), the lender should write “Cancelled”, “Satisfied in Full” or “Paid in Full” on the front face of the original Promissory Note and should then sign and date it. The original Promissory Note should then be given back to the Borrower.

Be careful when choosing an interest rate. If your rate is too high, it will be considered usury and invalid. Check with a local bank to determine the market, commercial interest rate.

Laws regarding promissory notes, security agreements and security interests vary from time to time. These forms are not intended to be and are not a substitute for legal advice. These forms should only be a starting point for you and should not be used or signed before first consulting with a lawyer to ensure that they address your particular situation. A lawyer should be consulted before negotiating any document with another party.

The purchase and use of these forms is subject to the “Disclaimers and Terms of Use” found at www.findlegalforms.com.

General Information

Secured Promissory Note and Security Agreement

When a person or entity (“Lender”) loans money to another person or entity (“Borrower”), the loan is typically formalised with a promissory note. In this type of instrument, the Borrower promises to repay the principal of the loan over a period time or on some future date. In addition, the Borrower may also agree to pay interest on the principal. A promissory note will set forth, among other things, the repayment schedule, the interest rate, and defaults.

Often the Lender will want some additional assurance, usually in the form of collateral, in case the Borrower fails to repay the loan. To ensure that the collateral is collectible in the case of a default, the parties will usually enter into another agreement—a security agreement. A security agreement sets out the rights of the Lender with regard to the collateral.

A security agreement will benefit the Lender in a number of ways. First, it will specify what property is included in the collateral. Second, it may help the Lender prove that he has a priority in the collateral (i.e. no other creditors or lenders have a right to it or that the Lender’s right is superior to other creditors). Third, in case of default, the Lender should not have to go to court to collect. The security agreement gives him immediate rights in the property. And finally, if the Borrower declares bankruptcy, with a security interest, as memorialised in the security agreement, the Lender should not have to stand in line with the other creditors, but rather should be able to take immediate possession of the collateral.

Laws change from time to time therefore both the Lender and Borrower should become familiar with the present laws before entering into these types of agreements.

In addition, before using the form you should always consult with your lawyer to ensure that it adequately addresses your specific situation.

DISCLAIMER:

FindLegalForms, Inc. (“FLF”) is not a law firm and does not provide legal advice. The use of these materials is not a substitute for legal advice. Only a lawyer can provide legal advice. A lawyer should be consulted for all serious legal matters. No Lawyer-Client relationship is created by use of these materials.

THESE MATERIALS ARE PROVIDED “AS-IS.” FLF DOES NOT GIVE ANY EXPRESS OR IMPLIED WARRANTIES OF MERCHANTABILITY, SUITABILITY OR COMPLETENESS FOR ANY OF THE MATERIALS FOR YOUR PARTICULAR NEEDS. THE MATERIALS ARE USED AT YOUR OWN RISK. IN NO EVENT WILL: I) FLF, ITS AGENTS, PARTNERS, OR AFFILIATES; OR II) THE PROVIDERS, AUTHORS OR PUBLISHERS OF ITS MATERIALS, BE RESPONSIBLE OR LIABLE FOR ANY DIRECT, INDIRECT, INCIDENTAL, SPECIAL, EXEMPLARY, OR CONSEQUENTIAL DAMAGES (INCLUDING, BUT NOT LIMITED TO, PROCUREMENT OF SUBSTITUTE GOODS OR SERVICES; LOSS OF USE, DATE OR PROFITS; OR BUSINESS INTERRUPTION) HOWEVER USED AND ON ANY THEORY OF LIABILITY, WHETHER IN CONTRACT, STRICT LIABILITY, OR TORT (INCLUDING NEGLIGENCE OR OTHERWISE) ARISING IN ANY WAY OUT OF THE USE OF THESE MATERIALS.

Secured Promissory Note

This agreement is made by and between:

LENDER: [insert LENDERname and address]

________________________________

________________________________

________________________________

BORROWER: [insert BORROWERname and address]

________________________________

________________________________

________________________________

Rs.__________________________________, 20__

[insert loan amount] _____________

[insert location]

For value received, the undersigned (“Borrower”), hereby promises to pay to the order of ____________________________________ (“Lender”), the principal sum of ___________________________________________________ (Rs._________________)

(the “Loan”) together with any accrued and unpaid interest thereon in the manner described below.

This Promissory Note (the “Note”) is referred to in and is executed and delivered in connection with that certain Security Agreement dates as of _______________________, 20____, and executed by Borrower in favour of Lender (the “Security Agreement”). Additional rights and obligations of Lender are set forth in the Security Agreement.

[Alter the provision below to reflect the agreed upon repayment schedule. CHOOSE ONE]

1. REPAYMENT:

[If the Loan will come due on a specific date, and the entire Loan repaid at that time—use the following]

The outstanding principal amount of the Loan and any accrued interest thereon shall be due and payable to Lender on _____________________, 20__.

[If the Loan is to be paid on a schedule, use the following. If there are more than six payment dates, copy additional line.]

The outstanding principal amount of the Loan is to be paid to the Lender in the following instalments:

Payment DatePayment Amount

_________________, 20_______Rs.______________________

_________________, 20_______Rs.______________________

_________________, 20_______Rs.______________________

_________________, 20_______Rs.______________________

_________________, 20_______Rs.______________________

_________________, 20_______Rs.______________________

[If the Loan is to be repaid in equal monthly instalments, use the following]

The outstanding principal amount of the Loan shall be paid in monthly instalments of Rs.____________, with the first payment beginning on _______________, 20____ and continuing every month thereafter with a like amount on the same date each month until the full amount of this note is paid in full.

2. INTEREST: The annual interest rate on the outstanding principal amount of the Loan from the date hereof until payment of the Note in full shall be ___________ percent (__%) or the maximum rate permissible by law, whichever is less. The interest shall be due and payable [monthly/quarterly/annually/ with the final payment amount as described in Section 1] [choose one].

[When choosing an interest rate consider tax and usury issues. You can check with a local bank to determine market commercial loan rates].

3.PREPAYMENT: Borrower may prepay this Note in whole or in part, without penalty. Payments shall be applied first to accrued interest and the balance to the outstanding principal of the Loan.

4.PAYMENT LOCATION: All payments hereunder shall be made to such address as may from time to time be designated by any holder of this Note and must be made in Indian Rupees.

5.SECURITY: This Note is secured by the Collateral described in the Security Agreement.

6.DEFAULT AND ACCELERATION: Borrower shall be in default under this Note upon any of the following: (a) failing to timely pay any principal amount due after demand is made, (b) Borrower dissolves, terminates its existence, or declares insolvency (c) Borrower files for relief under bankruptcy laws or any other laws for the benefit of creditors, (d) an involuntary petition is filed against Borrower under any bankruptcy laws (unless such petition is dismissed within 30 days), or (e) any default as described in the Security Agreement.

Upon the occurrence of any default Lender may declare the unpaid principal of the Loan and all accrued interest on this Note immediately due pursuant to applicable law.

In the event the Note shall be in default and given to a lawyer for collection or enforcement, or if suit is brought for collection or enforcement, or if it is collected or enforced through probate, bankruptcy, or other judicial proceeding, then Borrower shall pay Lender all costs of collection and enforcement, including reasonably lawyer’s fees.

7. BINDING EFFECT: The covenants and conditions contained in this Note shall apply to and bind the Borrower and its heirs, legal representatives, successors and permitted assigns.

8. CUMULATIVE RIGHTS: The parties’ rights under this Agreement are cumulative, and shall not be construed as exclusive of each other unless otherwise required by law.

9. WAIVER: The failure of the Lender to enforce any part of this note shall not be deemed a waiver or limitation of the Lender’s right to subsequently enforce and compel strict compliance with every provision of this Note. Furthermore, no waiver by Lender of any default shall operate as a waiver of any other default or the same default on a future occasion.

10. SEVERABILITY: If any part or parts of this Note shall be held unenforceable for any reason, the remainder of this Note shall continue in full force and effect. If any provision of this Note is deemed invalid or unenforceable by any court of competent jurisdiction, and if limiting such provision would make the provision valid, then such provision shall be deemed to be construed as so limited.

11. NOTICE: Any notice required or otherwise given pursuant to this Note shall be in writing and mailed certified return receipt requested, postage prepaid, or delivered by overnight delivery service, addressed as follows:

LENDER: BORROWER:

________________________________ ______________________________

________________________________ ______________________________

________________________________ ______________________________

Either party may change such addresses from time to time by providing notice as set forth above.

12. GOVERNING LAW: This Note shall be governed by and construed in accordance with the laws of India.

BORROWER:

____________________________________________________

(Signature)

___________________________________

(Name – Please Print)

__________________________________

(Position, if applicable)

Security Agreement

This Security Agreement (the “Agreement”) is dated as of ________________________, 20____, by and between _________________________________________ (“Borrower”) residing at ___________________________________________________ and _______________________________________ (“Lender”) residing at __________ ________________________________________ (collectively referred to as the “Parties”).

Whereas, Lender has or will make certain advances of money to Borrower (the “Loan”) as evidenced by that certain Promissory Note dated ___________________, 20__ (the “Note”), and

Whereas, Lender is willing to make the Loan, but only upon a condition that Borrower executes and deliver this Agreement.

1. GRANT: As security for the payment and performance of the Note, Borrower hereby grants to Lender a security interest in all of Borrower’s rights, title and interest in the following (collectively referred to as the “Collateral”):

(a)The Collateral will be kept at ______________________________________ and will not be removed except in the ordinary course of business.

(b) Borrower will not sell, dispose or otherwise transfer the Collateral or any interest in the Collateral without prior written consent from the Lender.

(c) Except for the security interest granted above, Borrower is the sole, legal and equitable owner of the Collateral.

(d) No other security agreement, financing statement, or other security instrument covering the Collateral exists.

(e) Borrower will not create or allow any other security interest or lien on the Collateral.

(f) Borrower, upon Lender’s request, will execute any financing statement or other document necessary to perfect or otherwise record the security interest.

(g) Borrower will not change its principal residence or principal place of business without giving Lender at least seven (7) days prior written notice.

(h) Borrower will maintain applicable insurance at all times with respect to Collateral against the risk of fire, theft and other such risks and in such amounts as Lender may require. The policies shall be payable to the Borrower and Lender as their interest appear. The policies shall further provide that the Lender’s interest in those policies will not be invalidated without at least ten (10) days prior, written notice to Lender.

(i) Borrower will make all necessary repairs and improvements to ensure that the Collateral remain in good working order. Lender may examine and inspect the Collateral at any reasonable time.

(j) Borrower will promptly pay all taxes and assessments due on the Collateral.

3. DEFAULT: Borrower shall be in default under this Agreement upon any of the following: (a) default in the payment or performance of the Note, (b) any material breach by Borrower of any warranty, representation, or covenant in this Agreement, (c) dissolution, termination of existence, declaration of insolvency, an assignment for the benefit of creditors or the institution of bankruptcy proceedings, whether voluntary or involuntary, if not dismissed within thirty (30) days.

4. REMEDIES: Upon default and at any time thereafter, Lender may declare the Loan secured by this Agreement, immediately due and payable and shall have all the rights and remedies of a Lender under any applicable laws. Without limiting the generality of the foregoing, Grantor expressly agrees that in any such default Lender may take immediate and exclusive possession of the Collateral. Lender may require Borrower to make the Collateral available in a mutually convenient location, which Lender shall reasonably select. The proceeds of any sale or disposition of any part of the Collateral shall be distributed by the Lender in the following order of priorities: (a) any reasonable costs, fees, or expenses, of Lender made in connection with the sale/disposition of the Collateral; (b) to Lender in an amount equal to any unpaid obligations of the Loan; and (c) any surplus to Borrower, in accordance with any applicable laws or as a court of competent jurisdiction may direct.

5. TERMINATION: This Agreement shall terminate upon the payment and performance in full of the Note.

6. BINDING EFFECT: The covenants and conditions contained in this Agreement shall apply to and bind the Parties and the heirs, legal representatives, successors and permitted assigns of the Parties.

7. CUMULATIVE RIGHTS: The Parties’ rights under this Agreement are cumulative, and shall not be construed as exclusive of each other unless otherwise required by law.

8. WAIVER: The failure of either party to enforce any provisions of this Agreement shall not be deemed a waiver or limitation of that party's right to subsequently enforce and compel strict compliance with every provision of this Agreement. Furthermore, no waiver by Lender of any default shall operate as a waiver of any other default or the same default on a future occasion.

9. SEVERABILITY: If any part or parts of this Agreement shall be held unenforceable for any reason, the remainder of this Agreement shall continue in full force and effect. If any provision of this Agreement is deemed invalid or unenforceable by any court of competent jurisdiction, and if limiting such provision would make the provision valid, then such provision shall be deemed to be construed as so limited.

10. NOTICE: Any notice required or otherwise given pursuant to this Agreement shall be in writing and mailed certified return receipt requested, postage prepaid, or delivered by overnight delivery service, addressed as follows:

LENDER:

________________________________

________________________________

________________________________

BORROWER:

________________________________

________________________________

________________________________

Either party may change such addresses from time to time by providing notice as set forth above.

11. GOVERNING LAW: This Agreement shall be governed by and construed in accordance with the laws of India.

[The remainder of this page intentionally left blank.]

IN WITNESS WHEREOF, the parties have caused this Agreement to be executed the day and year first written above.

BORROWER:

____________________________________________________

(Signature)

___________________________________

(Name – Please Print)

__________________________________

(Position)

LENDER:

___________________________________________________

(Signature)

__________________________________

(Name – Please Print)

__________________________________

(Position)

Customer Reviews

Average Rating:

Reviews: 1

R D -

Vallejo,

CA

The form was exactly what I wanted and it was easy to enter my information.
I saved 2 or 3 versions in Word as I went along. Somehow, none of the version can be found anywhere on my PC. If I hadn't emailed a copy to someone I would have lost 3 hours work. I don't know if it was my fault or it had something to do with the form. I have been using Microsoft Office for 16 years so I know about saving your work. I recommend confirming you have saved the form before closing it out.

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